Olathe pioneer spec building sells to investors

The region's first large speculative industrial building at 167th Street and Lone Elm in Olathe has sold to a Dallas investment group. Developed by Kessinger/Hunter, the 600,000+ square foot warehouse and distribution facility at 22101 W. 167th St. in I-35 Logistics Park is fully occupied by FedEx and Bushnell Corp.

Developer Dan Jensen of Kessinger/Hunter saw the current industrial real estate wave coming over a decade ago and worked with Sun Life Assurance to get the building approved, financed and out of the ground.

“This was the first large spec building in our market. It was very rewarding to take this project from an idea back in 2007, through design, permitting, construction, leasing, management and finally sale ten years later," said Jensen, who brokered the building's recent sale to Sealy & Co.

When Jensen first proposed the Lone Elm spec, commercial real estate investment was in a deep freeze. Nonetheless, Jensen persisted and successfully made his case about the potential for growth in Kansas City due to its interstate highway access and central U.S. location. Today, the metro is one of the top 10 industrial markets in the country.

"It is incredible the way the Kansas City metro has exploded with quality big box distribution facilities over the past 10 years. I do not see this slowing down anytime in the near future," Jensen said.

Jensen, meanwhile, continues to ride the wave he helped create. Kessinger/Hunter just announced construction plans for its third warehouse facility in I-35 Logistics Park, a "semi-spec" project that is partially pre-leased. For those keeping track, that brings Jensen's team to just under 2 million square feet of industrial space developed in South Johnson County.

Holliday Fenoglio Fowler, L.P. (HFF) negotiated the sale on behalf of the buyer. Kessinger/Hunter will continue to manage the Lone Elm building.

Bluhawk Apartments prepare for blastoff

Work has blasted off at the Bluhawk Apartments located at 167th Street and Lowell Avenue in south Overland Park, with mass blasting taking place over the past month. 

Haupt Construction has been busy clearing the site of native limestone with the help of three surface drill rigs. A rock crusher then processes large chunks of limestone to be recycled as gravel filler for use throughout the entire project. In October, HarenLaughlin Construction will begin laying footings and foundations in preparation for vertical construction to begin.

“It’s rewarding to see this project move closer to vertical construction. Bluhawk Apartments are a critical component of the overall 300-acre Bluhawk mixed-use development,” said Bart Lowen, vice president of Price Brothers Development.

When completed in early 2020, Bluhawk Apartments will include eight buildings and a total of 201 apartment units ranging from one- to three-bedroom floor plans with higher-end interior features such as granite countertops. Each building will have garages as well as open-space parking.

The community will include a basketball court and convenient location adjacent to the Shawnee Mission Health-Blue Valley full-service hospital, Cosentino’s Market, and Bluhawk’s many shops and restaurants.

KC SIOR Development Day moves to Union Station

Union Station in Downtown Kansas City on Thursday will play host to SIOR Development Day, the region's largest annual gathering of commercial real estate realtors and developers. Presented each year by the local chapter of the Society of Industrial and Office Realtors (SIOR), Development Day is considered by many to be the metro’s signature CRE networking event of the year.

“This event provides an unparalleled opportunity to network with industry leaders, highlight new projects, explore opportunities and celebrate successes - all in one setting. We are thrilled to be holding this year's event at Kansas City's historic Union Station and are looking forward to a great evening,” said 2018 Development Day Chair John Stacy, Reece Commercial.

More than 80 exhibitors and hundreds of attendees are expected to attend the free event from 4:30-7:30 p.m. in Union Station's Grand Plaza. The event includes hors d’oeuvres from Jack Stack and cash bar. Free onsite parking will be available in the Union Station parking garage.

“We value the support and participation of those in the Kansas City commercial real estate industry that help develop the Kansas City community. It is an honor to chair the 29th annual SIOR Development Day,” Stacy added.

City Club groundbreaking reinvents Hereford House site

The $76 million City Club Apartments Crossroads mixed-use community broke ground ground Wednesday, signaling new life for the landmark Hereford House site at 20th and Main streets in Downtown Kansas City.

Integrated into the historic Midwest Hotel, the 7-story multifamily building will include 283 apartments and penthouses and feature international design, rooftop dining, an outdoor theater, and 50 floor plans.

"Kansas City is proud to be home to the next exciting development from City Club Apartments," Kansas City Mayor Sly James told attendees at the groundbreaking.

City Club Apartments has retail and restaurant tenants lined up for the project, with announcements pending. City Club has $500 million currently under development in more than a half-dozen U.S. markets.

Metropolitan Warehouse & Delivery trucks into KC market

New Jersey-based Metropolitan Warehouse & Delivery is expanding into the Kansas City market, leasing 20,000-square feet at 3518-3522 Enterprise Dr. near Interstate 435 and Interstate 70.

Metropolitan Warehouse & Delivery offers "white glove" in-home delivery and packaging of high-end furniture and antiques and works with retailers Costco and Restoration Hardware. The company has an estimated 2 million square feet of warehouse and distribution space under lease nationwide, including facilities in Wichita, Denver, and Dallas.

"The Kansas City lease rounds out the company's Midwestern footprint," said Ben Boyd of NAI Heartland, who represented Metropolitan Warehouse and Delivery in the transaction. "They try to set up distribution hubs every 200 to 300 miles, and proximity to the I-70 trucking corridor is obviously very strategic."

Metropolitan Warehouse and Delivery took occupancy of the building at Stadium Industrial Park Sept. 1. Mark Fountain of True North Industrial Realty, LLC represented the landlord in the transaction. 

"I believe that as more and more companies develop their 'last mile' strategy, they will find that Stadium Industrial Park is an ideal location," Fountain said.